BP goes ahead with Train 3 project

By Bernard Loebs

BP Plc, the lead member of the Tangguh consortium, will go ahead with the plan to develop Train 3 at the Tangguh LNG plant in West Papua, despite concerns over the falling crude prices.

Acting Director General of Oil and Gas I Nyoman Wiratmadja told Petromindo.com BP will go ahead with the project because it believes the crude price will have been back to normal by the time the project comes onstream in 2020.

Several companies have asked to review their projects for this year and beyond in view of the steep drop in crude prices and the government understand the reasons and allow them to do so.

Meanwhile, a source said the Ministry of Finance has approved of BP?s proposal to use Trustee Borrowing Scheme (TBS) for the Train 3 project. The firm has reported the approval to the Ministry of Energy and Mineral Resources.

Editing by Johannes Simbolon